RECKLESS SPLITTING OF WAGES INTO ALLOWANCES FOR EPF WILL COST DEARLY TO THE EMPLOYERS ------------------------------------------------------------------------------------------------------------------ Labour Law Reporter has been persistently warning the subscribers to adopt protective wage structure in view of the judgments of High Courts upholding all allowances except HRA will form part of basic wages for EPF contributions. Now the Supreme Court in its judgment dated 28.2.2019 reported in 2019 LLR 399. has upheld the judgments of the High Courts. An appeal by EPFO against judgment of Calcutta High Court has been accepted by the Supreme Court holding that special allowance will also form the part of wages for EPF contributions. ------------------------------------- ---------------------------------------------------------------------------------------------------- While issuing the appointment letters to the employees the employers' recklessness is foun
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